Montana Central, Mr. Villard looked upon it as a grave danger, especially in view of the openly announced intention of James J. Hill to build on to Spokane Falls and Puget Sound. But the executive officers not only made light of the effect of the completion of the Montana Central to Helena, but even contended that the loss from it would be made up by its furtherance of the growth of northern Montana. Their contention was borne out by the earnings at the time, but Mr. Villard, upon a close investigation of the case, became convinced that it was most important to prevent the completion of the rival line to the Pacific coast, or, if this could not be done, to forestall possible harm to the Northern Pacific in some other decisive way. It will appear hereafter what he did in this direction.
At his instance, in pursuance of his purpose to utilize the transaction with Chase & Higginson to bring about permanent peace between the Northern Pacific and Union Pacific, committees were appointed by the two boards to find a basis for a settlement of all the differences, but the negotiations were conducted mainly by Charles Francis Adams, then president of the Union Pacific, and by Mr. Villard. They extended from the fall of 1887 to the following spring, during which time many personal conferences were held and a voluminous correspondence was conducted by the chief negotiators. After considering a number of propositions from both sides, a formal agreement was finally reached which was to be submitted to the boards for ratification.
Mr. Villard went to Germany for the double purpose of trying the cure at Karlsbad for his gout, and of having personal consultations with his financial backers. The principal subject discussed with the latter was his relation to the Oregon & Transcontinental Company. While he had declined a reelection to the presidency or even to the board, he was being steadily urged to reconsider his declination and to again take charge of the company. He deemed it incumbent upon him to submit the question to
